Coats, the world’s leading industrial thread manufacturer, has been recognised for its outstanding achievements in increasing growth and shareholder value by the Institute of Chartered Accountants in England and Wales (ICAEW). Coats was presented with the Corporate Development Award at the ICAEW Corporate Finance Faculty’s Annual Reception, held last night at Goldsmiths’ Hall in London.
The Corporate Development Award recognises London-listed companies whose innovative strategy have made the most effective use of M&A to grow their business, and increase shareholder value. ICAEW’s Corporate Finance Faculty, in collaboration with the M&A Research Centre at Cass Business School, devised a unique ‘best-in-class’ methodology to analyse the contribution of substantial acquisitions to the acquiring companies’ total returns and their overall corporate performance.
Simon Boddie, Chief Financial Officer, Coats, said: ‘A key part of our strategy for development and growth is to make acquisitions of companies with unique capabilities that can leverage off the existing Coats network. The businesses we have acquired are all performing well under our ownership and to have our success recognised externally with the ICAEW’s Corporate Development Award is very rewarding. We have a small in-house team which, together with support from our professional advisors, has been able to develop a previously underused corporate muscle and this award demonstrates we are stretching it well.’
Coats acquired Patrick Yarn Mill, a manufacturer of high-performance engineered yarns based in North Carolina, US, in December 2017. In June 2016 it acquired Gotex, a Spanish based company which designs and manufactures high performance fibres, yarns and tapes used in the telecommunications energy and oil and gas sectors. Also in June 2016, it acquired Fast React Systems, a global provider of software solutions to improve the operational efficiency of manufacturers, sourcing companies and retailers in the apparel and footwear industry. Coats entered the FTSE4Good UK Index in July 2018 and in June 2017 it re-entered the FTSE 250, having been a founding member of the FT 20 Index in 1935.
David Petrie, ICAEW Head of Corporate Finance, said: ‘It is essential that businesses continue to strive towards growth and advancement despite times of uncertainty. This year’s winner of the Corporate Development Award has done exactly that; Coats has engaged in numerous major deals and its innovative M&A strategy resulted in impressive growth numbers and increase in shareholder value.’
The Corporate Finance Faculty is ICAEW’s centre of professional excellence in corporate finance contributing to policy development and consultations by international organisations, governments, regulators and other professional bodies.